What does Securities Act of 1933 mean? Read on to discover the definition & meaning of the term Securities Act of 1933 - to help you better understand the language used in insurance policies.
Securities Act of 1933
Act to ensure the availability of complete and reliable information about securities being sold to the public. The most important components of the Act are Section 5, which makes it illegal to offer or sell securities to the public unless they have first been registered with the Securities and Exchange Commission (SEC), and Section 11, which imposes civil liability for material misstatements in registration statements. Failure to comply with the Act's technical or substantive requirements in connection with a public offering of a security can result in liability of the corporation and its directors and officers.
We hope the you have a better understanding of the meaning of Securities Act of 1933.